Mining, steel, power, transport and sales enterprises of Mechel work within a single production chain and form a whole vertically intergrated production complex. A part of our products we sell to the market, another part is used as raw material for Mechel's production of high value-added products.
Company’s assets produce a full chain of raw materials and high value-added products: coal, iron ore, pig iron, steel, billets, rolled products, hardware and electricity generation. Shipping and sales are secured by its own logistics and sales networks. Such vertically integrated complexes with a balanced production chain and its own secured resource and power base are more effective for the purposes of cost savings and less vulnerable to market volatility.
Mechel’s power activities allow the Group to sell part of produced steam coal, profit from supplies of end product to third parties on the free market and supply the Group’s enterprises with electrical and thermal energy.
Ownership of transport capacities allows Mechel to save costs. The Group is therefore less dependent on fluctuations on the transport market and can form a flexible supply schedule tailored to our clients’ needs.
Mechel pays special attention to making its procurement procedures more transparent and efficient.